Common Claims and Risks in Manufactured Homeownership

Home Insurance

By Matt Morand & Team · Published

10/12/2025

Introduction

A manufactured home offers a practical path to homeownership, but it also carries a specific set of risks that differ from those of site-built houses. As an advisor who reviews hundreds of manufactured home insurance claims each year, I have seen how a single windstorm or liability mishap can derail a family’s financial progress. In this article, we will spotlight the most common risks for manufactured homes, share real-world claim examples, and outline prevention strategies you can start using today. Our goal is simple: help you protect what you have built and minimize surprises at claim time.

The Landscape of Manufactured Home Risk

Manufactured housing represents nearly 6 percent of occupied homes in the United States, according to the U.S. Census Bureau. Colorado alone counts more than 100,000 manufactured units, many clustered along the Front Range where severe weather is frequent. Because these homes are typically lighter, elevated on piers, and connected to utility systems with flexible lines, certain perils are magnified compared with traditional construction.

Weather leads the pack

• The Insurance Institute for Business & Home Safety (IBHS) notes that 70 percent of frequent manufactured home insurance claims stem from wind or hail.

• Colorado’s infamous 2023 hail season generated more than 200,000 property claims statewide, says the Rocky Mountain Insurance Information Association. Manufactured homes in Adams and Weld Counties saw average payouts 18 percent higher than stick-built properties due to roof membrane loss and siding punctures. Fire risk is higher than many assume

• Data from the National Fire Protection Association shows manufactured homes experience 17 percent more fires per 1,000 homes than site-built residences, largely because of older electrical systems and space-heater use.

• Flames spread faster in confined layouts, meaning total losses are more common. Liability incidents are often overlooked

• Roughly 1 in 10 claims we file for manufactured homeowners involve visitors tripping on skirting panels, loose steps, or uneven walkways.

• Dog bites also rank high. According to the Insurance Information Institute, the average dog bite claim cost reached $64,555 in 2022. Why specialized coverage matters

Standard homeowners policies may under-insure a manufactured unit if the policy does not account for the cost of transporting, reinstalling, and anchoring a replacement structure. Riders for adjacent structures, debris removal, and post-event living expenses are also critical yet frequently missing. A proactive agent will close these gaps before a storm, not after.

Breaking Down the Most Frequent Manufactured Home Insurance Claims

1. Wind and Hail: The Front-Line Threat

Case study: Thornton, CO, June 2023

A microburst producing 70-mph winds ripped asphalt shingles from a 1998 double-wide. Water infiltrated ceiling seams, damaging insulation and drywall. Total claim: $46,800, of which $9,500 was for tear-off and disposal fees that the homeowner did not realize were excluded in his prior policy.

Prevention tips:

• Install IBHS-rated hurricane straps and anchor tie-downs. Upgrading costs roughly $800 to $1,200 but can cut wind damage by up to 60 percent.
• Schedule a roof inspection every two years and after major hail events. Fast-track repairs to maintain warranty coverage.

2. Fire and Electrical Failures

Case study: Pueblo West, CO, January 2024

An overloaded space-heater circuit sparked a kitchen blaze. The home’s 30-year-old aluminum wiring accelerated fire spread. The $112,000 claim exceeded replacement cost limits, leaving the client to cover code-upgrade expenses.

Prevention tips:

• Have a licensed electrician inspect wiring, especially if the home predates the 1994 HUD code revision.
• Replace portable heaters with hard-wired baseboard or ductless systems rated for continuous use.
• Install interconnected smoke alarms in each sleeping area and test monthly.

3. Water Damage from Burst Pipes

Case study: Greeley, CO, February 2022

Uninsulated water lines beneath the chassis froze, rupturing overnight and flooding subflooring. The $18,300 claim included mold remediation not originally covered.

Prevention tips:

• Apply heat tape on supply lines and add skirting insulation rated to R-11 or higher.
• Shut off water and drain lines if the home will sit vacant for more than 48 hours in winter.

4. Liability: Slips, Trips, and Dog Bites

Case study: Aurora, CO, August 2023

A delivery driver tripped over a broken concrete pad, fracturing an ankle. The liability payout was $86,000, plus $6,400 in legal fees.

Prevention tips:

• Conduct a quarterly “walk-around” inspection, repairing loose boards and uneven walkways.
• Maintain at least $300,000 of personal liability coverage; consider a $1 million umbrella for added peace of mind.
• Enroll pets in behavioral training and secure fenced areas.

Insider Insights and Forward-Looking Advice

1. Climate volatility is raising premiums Actuaries at Verisk Analytics report a 12 percent jump in wind-hail loss costs nationwide over the past five years. We are seeing carriers tighten underwriting guidelines for pre-2000 manufactured homes, especially those without reinforced roofing. Documenting upgrades with photos and contractor receipts can help preserve insurability and earn credits of 5 to 15 percent.

2. Small upgrades pay big dividends Simple measures such as replacing original galvanized plumbing with PEX piping can cut non-weather water losses by nearly 40 percent, according to a 2021 study by LexisNexis Risk Solutions. Many of our clients recoup the $1,200 average upgrade cost within three years through reduced claims and lower deductibles.

3. Bundle to fill coverage gaps Combining your manufactured home policy with auto, life, and an umbrella can unlock multi-policy discounts while ensuring a single advisor sees the full risk picture. At 5280 Insurance Agency, we often integrate a Term Life policy to cover mortgage payoff, protecting the family’s equity if tragedy strikes.

4. Document, document, document Carriers require proof of ownership and condition. Use your smartphone to record a 360-degree video of each room and outdoor structure. Store it in cloud-based software like Google Drive. When frequent manufactured home insurance claims arise, a two-minute video can shave weeks off the settlement timeline.

5. Review annually, not just at renewal Regulatory changes, park rules, and personal circumstances evolve quickly. A yearly coverage review identifies new exposures, such as starting a home-based business or installing solar panels. We advise scheduling this check-in during the quieter shoulder seasons of spring or fall when contractors are readily available for any needed upgrades.

Conclusion

Manufactured homeownership delivers flexibility and affordability, yet its unique construction invites a different mix of hazards than site-built housing. Wind, hail, fire, plumbing failures, and liability incidents top the list of manufactured home insurance claims we handle in Colorado and across the Mountain West. By strengthening tie-downs, updating electrical and plumbing systems, and maintaining solid liability limits, homeowners can drastically reduce both the frequency and severity of losses. Pair those steps with an insurance strategy tailored to the nuances of manufactured housing, and you safeguard not only the structure but also the financial future it represents.

Your Next Step with 5280 Insurance Agency

Ready to feel confident instead of uncertain? Let 5280 Insurance Agency act as your Personal CFO for risk management. Our team compares multiple carriers, closes the coverage gaps unique to manufactured homes, and guides you through practical loss-prevention upgrades. Whether you are reviewing an existing policy or buying your first manufactured home, we stand beside you with RamseyTrusted integrity and local know-how. Reach out today for a complimentary coverage review and a customized prevention checklist. Together, we will protect what you have built and position you for long-term peace of mind.

About the author

Matt Morand, CIC, CRM, LUTCF, and the 5280 team share practical guidance drawn from insurance, risk management, financial services, and client education experience.

Have a question about this topic?

Talk with the 5280 team about the context, tradeoffs, and next step that fit your situation.